o one of the resources economists categorize as integral o must present the capital structure of the proposed

to production, the other three being land/natural business

resources, labor and capital. 3. THE BUSINESS PROPONENTS : Organizers with
o process of designing, launching and running a new their Capabilities and Contribution
business o contains information about the business proponents
Entrepreneurs-people who create the business or stakeholders
BUSINESS PLAN 4 types of stakeholders
o written document that describes in detail how a business a. Resource mobilizers–who else are on board to share
is going to achieve its goals the burden of raising money
o lays out a written plan from a marketing, financial and b. Technology providers and applicators–if there will be
sufficient funds to pay for the technology
operational viewpoint
c. Governance and top management–the strategies and
o fundamental tool any start-up business needs to have in performance indicators
place prior to beginning its operations d. Operating and support team–are the implementing,
o good business plan should outline all the costs and the operating and support teams–what programs, activities,
downfalls of each decision a company makes tasks etc. would be in place
o must include at least an overview of the industry of 4. The Target Customers and the Main Value
Proposition to the Customer
which the business will be a part and how it will Target Customers-must be of sufficient size,
distinguish itself from its potential competitors sufficient paying capacity and have sufficient interest to
P U R P O S E OF BUSINESS PLAN purchase the products or service
o can be written prior to setting up an enterprise which are 5. The Market, Market Justification based on the
similar to a prefeasibility study and a feasibility study Industry Dynamics and the Macro Environmental
o written during the first few years of the enterprise in Factors Affecting the Opportunities and Threats in the
order to guide the entrepreneur on which strategies Market, The Size, Potential and Realistic Share of the
would be most beneficial for the enterprise Market
o focuses on bringing the enterprise to a higher level of o should estimate the total market supply and demand
growth for the product offerings
o identify the factors that influence demand and supply
I M P O R T A N C E OF BUSINESS PLAN
of the product
o to allow a company to lay out its goals and attract o discuss the major trends and changing patterns in
investment the macro-environment
o way for companies to keep themselves on track 6. The Product and Service Offerings
E L E M E N T S OF BUSINESS PLAN o outline of the products and services it will offer, may
1. Introduction include pricing, product lifespan, consumer benefits
A. The Business Concept and the Business Model o manufacturing processes, patents, proprietary
o contains the essence of the enterprise in a concise technology, and research and development (R&D)
but powerful manner 7. The Enterprise Strategy and Enterprise Delivery
o stresses the value of the product offering to the Systems: Business Competitiveness
target customers o should expound on the Enterprise Strategy (ES)
o PRODUCT CONCEPT must be turned into a o present how the Enterprise Delivery System (EDS)
BUSINESS MODEL would enable the business to implement the
Business Model – a formula on how the enterprise strategy
enterprise exactly plans to make money out of the EDS – starts from the Input proceeds to the
business Throughput and produces the Output and serves as
B. The Business Goals: Vision, Mission, the enabler of the Enterprise Strategy
Objectives and Performance Targets 8. The Financial Forecasts and Expected Returns,
o show the future and long-term prospects of the Risks and Contingencies
enterprise o Financial Forecasts and outcomes
o objectives must be more specific than the vision and o Expected returns from the business
mission statements a. Return on sales
o must be Measurable, Achievable and Time-bound b. Return on assets or investments
o objectives must then be translated into key result c. Return on stockholders’ equity
areas (KRAs) o Calculate long-term returns
o KRAs must be rendered into quantified performance o Business risks and Financial Risks
measurements 9. Environmental and Regulatory Compliance
C. The Business Offering and Justification o must articulate the laws, rules and regulations
governing the business and the industry
2. EXECUTIVE SUMMARY
o all necessary local government ordinances and
o contains everything that is relevant and important to
barangay ethics would be followed by the enterprise
the business audience 10. The Capital Structure and Financial Offering:
o synthesis of the entire plan Returns and Benefits to Investors, Financiers and
o must contain the major argumentations of the Business Partners
business proponent on why the business will work o discussions on who are the investors, the financiers
and succeed and the partners of the enterprise
o must describe the product/service of the enterprise NOTE: THE BUSINESS PLAN MUST APPEAL TO ITS
o discuss and justify the enterprise strategy and TARGET AUDIENCE
delivery system
o investment requirements should be presented